Description: It’s a pretty thin line separating about half of Canadians from financial pain. CTV Winnipeg reported that close to half of Canadians are within $200 of insolvency when the end of the month rolls around. About 40% of Canadians foresee that they will be going deeper into debt this year to cover off their cost of living.
Date: January 21 , 2019
1) When a student has $200 left at the end of the month, that’s probably lots of cash. What do you think of the $200 figure as a barrier for a family ?
2) When you look ahead to an accounting career, do you see yourself working in the area of personal financial planning?
3) Last week this column looked at the principles of managing cash as per pages 381-2 in Wiley’s Financial Accounting: Tools for Business Decision-Making. One of those principles is to prepare a cash budget. How can preparing a cash budget help you avoid going into more debt to cover off living expenses?